Sirius Real Estate has completed the acquisition of a development site in Munich, immediately adjacent to the Company’s Munich-Neuaubing business park, for €13.3m.
The site has been acquired at its land value and represents an important strategic acquisition that allows the Company to secure the final corner of a well-located 130,000m2 estate in the Bavarian capital, presenting it with a number of value add and development options in the future.
Sirius has already been exploring potential alternative development opportunities at the Munich-Neuaubing site, which lies in a largely residential area, and this acquisition will enhance the optionality available.
The new asset being acquired comes with day one rent roll of approximately €740,000 per annum and the Company envisions re-positioning the tenant base to maximise this income in the short term whilst exploring development plans. The site benefits from a highly desirable micro-location, 16km from Munich city centre and 1.6km off the A99 motorway, providing excellent connectivity.
Andrew Coombs, Chief Executive Officer of Sirius Real Estate, commented: “This strategic acquisition offers significant operational synergies as well as the potential to unlock meaningful value when considered alongside our existing adjacent Munich- Neuaubing business park. With full ownership of this 32 acre estate (c. 13ha) in a highly desirable location we have identified attractive longer term development opportunities to significantly enhance returns. In the meantime, we intend to put the Sirius platform to work immediately to maximise net operating income from the asset. We continue to make good progress on our acquisition pipeline through strategic acquisitions across the UK and Germany.”
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